INDIAN OVERSEAS BANK OFFICERS’ ASSOCIATIONRed. No. 321/MDS (Recognised by the Management)

Administrative Office : 763 Anna Salai, Chennai - 600 002

Ph. General : 28517072, 28521925, 28525214 President / General Secretary : 28514134, Fax : 28529515

e.mail : ioboa@ iobnet.co.in website : www.ioboa.co.in

thCir. No.03/18 19 March 2018

AVOID SHORTCUTS TO SUCCESS &

ADHERE TO COMPLIANCE FOR LONG TERM COMFORT

Dear Comrades,

We have all been shell shocked over what has happened in Punjab National Bank. The

scale of the recent scams and losses suffered by PSBs has greatly disturbed all of us.

This has become an alibi for the so called pundits of our country to demand privatization

of Public Sector Banks though the real cause is the colossal failure of the system aided

by the inadequate monitoring of control mechanism and regulation of the entire

banking sector.

We have seen the negative publicity that the incident has generated despite the fact

officers and employees are innocent, sincere to the core and above all hard working.

One individual or a set of individuals have brought down not only the image of the bank

but the entire banking industry which is very sad. The media hype and over activism on

the incident to create sensation has added to the damage to reputation and PNB lost a

market capitalization of about 40%. The multiplier effects of such frauds have created

ripples across the country with wide ranging economic and financial ramifications.

Suddenly everyone has woken up – the regulators, the CBI, CVC, Government, the Press

and the Media. We as an organization had all along demanded publication of the list of

willful defaulters in line with the Supreme Court order, stringent recovery measures

with real teeth. There must be zero tolerance towards financial indiscipline in

banks/financial institutions. The worst fall out of the entire drama is that from now

onwards all NPAs and high value advances will be put under the scanner.

Quite expectedly the damage control measures have been initiated by different stake

holders. As we are very well aware, once an investigating authority chooses to

2

investigate, all violations however minor they are, will be invariably questioned and

interrogated and charge sheets are likely to follow. While battling the catastrophe, the

enforcement machinery are left with little option but to take a microscopic view of all

the violations in systems and procedures.

TIME & AGAIN, our Organisation had reiterated the absolute need to scrupulously follow

the systems and procedures laid down in our bank in discharging official duties. One

must always remember that we as bankers deal with public money and trust. Trust as

rightly said is the sine quo non of banking. It is needless to mention that as officers

working for the bank it is our paramount duty to follow meticulously the systems and

procedures in vogue.

Hence comrades, let us all work within the frame work of the bank's guidelines. Bank

has put in place a well placed policy on various fronts of operation and exhibit patience

to go through the same and upgrade the skills.

Ÿ Please exercise your common sense and look out for signals or situations that give rise

to doubt.

Ÿ Don't procrastinate on periodical inspections (pre/post sanction). Make it

meaningful and not just a mere formality. Please record your observations and bring

it to the knowledge of higher ups/controllers. Pre/post sanction inspection must be

done recording end use of funds.

Ÿ Share your thoughts, doubts and apprehensions with colleagues. They will be of help

to you.

Ÿ Please don't fall a prey to the so called “Top Class” treatment of Top Clients. Treat

them with utmost respect, warmth and render the highest level of customer service

but remain guarded.

Ÿ Honesty and integrity of every officer should be above board by words and action. In

the over enthusiasm to get more business and to achieve the targets, please don't

violate the systems and procedures, at any cost. You will not only hit the image of

the bank but also hurt yourself, your career and more importantly the family behind

you.

Ÿ Garnering business for the bank is very important; else the bank will not grow or

survive. But let that be quality business, ethical business that will do the bank proud.

Before submitting a high value proposal; or handling any large transaction, please

ensure that you have followed all the laid down norms.

3

Ÿ Desist from acting on oral instructions from any level of authority and always rely on

records and on an informed decision making. In case of contingency when you act on

any instruction or when you have to take a business/credit decision ensure that the

same is followed up for confirmation.

Ÿ Please do not hesitate to be a whistle blower. Our Bank has a well entrenched

whistle blowing mechanism and please do not hesitate to ring early alarm. As we

mentioned earlier, we deal with trust. If someone tries to break the trust let us

expose them and thereby save many others from unwittingly falling into disciplinary

net and more importantly save the bank.

Ÿ Please also don't fall for the cross selling freebies and undercut by converting bank's

deposits into cross selling products. Cross selling should not be at the cost of the

bank's core business. Don't forget that since ages IOB has been doing ethical business.

The core areas of deposits, advances NPA recovery and quality of our assets are very

important. Let us not compromise in terms of time and energy on our core activity.

Ÿ Let us adhere scrupulously to instructions from our controllers. Never ever update

the database without underlying records and the drawing power has always to be

updated with the explicit sanction/consent of the First Line Branch Manager.

Ÿ Maintain proper records for exercising discretion conferred by the Bank.

Ÿ The compliance though intertwined with procedures and resultant inconveniences,

promises peace and tranquility in the long run.

Ÿ Please update your knowledge on all our new products and services, systems and

procedures and be frontline marketing managers for all the products and services of

the bank based on customer age group and customer needs so that they get total

satisfaction at one point. Knowledge not only will enhance your customer delivery

but also drive away the perpetrators of frauds.

Ÿ Above all password secrecy to be adhered to and they should not become mere

passing of word.

Comrades, the need of the hour is to ensure that the Public Sector character of banks

are protected and reflected as truly representative of the country's diverse socio

economic fabric and as growth engines of the economy. Let not a few incidents a few

individuals or agencies or any imported thought process and theories paint the Indian

4

Public Sector Banks black and tarnish the wonderful image built up over a period of time

with the bricks made out of our toil and cemented with our efforts and affection.

Let us all be proud to be an IOBian and rightly so and always follow the path of business

ethics so that Brand Equity of our bank gets further strengthened.

With best wishes,

(B. SRINIVASAN)General Secretary

(T. MURALI SOUNDARARAJAN)President

AUGMENT CASA - ENHANCE RETAIL CREDIT

AVOID SLIPPAGE - ACCELERATE RECOVERY

Yours comradely,

IOB ZINDABADIOB ZINDABAD

IOBOA ZINDABADIOBOA ZINDABAD

AIBOC ZINDABADAIBOC ZINDABAD

OUR UNITY ZINDABADOUR UNITY ZINDABAD

IOB ZINDABAD

IOBOA ZINDABAD

AIBOC ZINDABAD

OUR UNITY ZINDABAD